Ethereum’s Decline Has Also Negatively Impacted DeFi Tokens

The DeFi token market took a big hit with the Ethereum price falling.

Summary of the News

  • Ethereum fell more than 7%, falling below the $ 2,000 level.
  • The decline in Ethereum also negatively impacted the DeFi markets.
  • DeFi tokens such as Uniswap, SushiSwap, Aave, etc. reported losses.

Cryptocurrency traders and investors in the US have woken up to significant losses in the market today. Bitcoin fell more than 5% to $ 55,800; Ethereum, the second largest crypto asset by market cap, also experienced similar declines.

ETH Dips Below $ 2,000

Ethereum today fell more than 7%, losing one-week gains to $ 1,948. ETH is currently trading at the $ 2,000 level.

The decline of Ethereum has also negatively impacted the DeFi market.

DeFi, short for “decentralized finance,” is a term that describes a collection of non-custodial, peer-to-peer financial products. This includes lending, borrowing, and trading services that operate without the need for an intermediary such as a bank. Many of these platforms have their own crypto tokens. In addition, the DeFi market saw a significant rise throughout 2020.

Losses in DeFi Tokens

With the losses in Ethereum, Uniswap’s UNI token fell sharply by almost 8% and is currently trading at $ 28.8. Uniswap is a decentralized finance protocol used to trade cryptocurrencies without a central organization overseeing transactions. The UNI token is used to facilitate transactions on the increasingly popular platform.

PancakeSwap is another DeFi protocol developed by crypto exchange Binance that runs on the blockchain Binance Smart Chain that supports smart contracts. The protocol’s domestic token, $ CAKE, fell 4.7% to $ 15.40 today. CAKE is currently trading at $ 17.60.

SushiSwap is another popular decentralized exchange in the DeFi world. SushiSwap’s SUSHI token, which is basically a Uniswap clone, also fell 7% today.

Aave, a decentralized lending platform known for “flash loans,” has seen a 67,000% price increase since October 2020. However, today the coin has lost about 11% in value and is currently trading at around $ 350.

Synthetix, the DeFi protocol that allows users to create artificial versions of any asset and invest in their price, uses its own SNX token on the platform. The SNX fell 12.2% today and is currently hovering around $ 19.17.

All in all, it’s not a great day to attend the DeFi party. However, if you entered early or feel positive for the long-term “future of finance”, today’s big losses may not seem “big” to you at all.

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